Executive Summary

• Associated British Foods reported 9M17 results for the 40 weeks ended June 24, 2017. This report focuses on the results for Primark, the company’s retail division.
• Primark reported that its 9M17 revenues increased by 21% year over year and by 13% on a constant-currency basis. Primark increased its selling space by 13% year over year in the period. In 3Q17, revenues increased by 21% on a reported basis and by 15% on a constant-currency basis.
• In 1H17, Primark’s operating profit margin contracted by 170 basis points, to 10.0%. Management had previously forecast further margin declines for 2H17, but now expects the FY17 operating margin and the rate of decline to be in line with those seen in 1H17.